Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2014

Fair Value Measurements

Fair Value of Financial Instruments

The fair values of financial instruments that do not approximate the carrying values were as follows (in millions of dollars):

	January 31, 2014		October 31, 2013		January 31, 2013
	Carrying Value	Fair Value *	Carrying Value	Fair Value *	Carrying Value	Fair Value *
Receivables financed – net	$ 24,674	$ 24,557	$ 24,569	$ 24,459	$ 21,915	$ 21,900
Retail notes securitized – net	3,491	3,463	4,153	4,124	3,033	3,032
Securitization borrowings	3,491	3,492	4,109	4,113	3,044	3,050
Current maturities of long-term borrowings	3,903	3,912	3,602	3,623	3,616	3,690
Long-term borrowings	14,685	14,852	14,195	14,331	14,370	14,518

*   Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars):

	January 31		October 31		January 31
	2014		2013		2013
Receivables from John Deere
Derivatives:
Interest rate contracts	$	165.1	$	175.5	$	322.2
Cross-currency interest rate contracts	4.2		1.1		5.2
Other assets
Derivatives:
Interest rate contracts	147.3		156.8		206.4
Foreign exchange contracts	13.0		1.0		6.2
Cross-currency interest rate contracts	.1		.1
Total assets *	$	329.7	$	334.5	$	540.0
Other payables to John Deere
Derivatives:
Interest rate contracts	$	108.5	$	84.8	$	29.6
Cross-currency interest rate contracts			1.1		2.2
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts	29.3		29.9		40.9
Foreign exchange contracts	6.2		15.8		11.2
Cross-currency interest rate contracts			16.0		30.3
Total liabilities	$	144.0	$	147.6	$	114.2

* Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds that were Level 1 measurements.

Fair Value, Nonrecurring, Level 3 Measurements from Impairments

Fair value, nonrecurring, Level 3 measurements from impairments were as follows (in millions of dollars):

	Fair Value *
	January 31		October 31		January 31
	2014		2013		2013
Receivables:
Wholesale receivables					$	.1
Operating loans	$	14.0	$	14.3
Total Receivables	$	14.0	$	14.3	$	.1

* There were no losses recorded for the three months ended January 31, 2014 or 2013.